Ramelius Resources (ASX:RMS) has announced a significant expansion of its Mt Magnet mining operation. The new 10-year plan aims to enhance production and extend mine life while maintaining competitive costs.
The Company projects consolidated annual gold production of 244,000 ounces from FY26 to FY35. The all-in sustaining cost (AISC) is expected to remain below A$2,100 per ounce.
Managing Director Mark Zeptner said, “The Mt Magnet hub continues to perform at its highest level of production and cashflow generation in FY25 with cost forecasts at an industry-leading AISC of A$1,600 per ounce for the next 2.5 years.”
Figure 1: Mt Magnet Production & AISC
Mt Magnet Mine Plan Highlights
The mine plan outlines significant investments and production targets:
- Total pre-tax cash generation estimated at A$4.3 billion at a gold price of A$4,500 per ounce.
- Expansion of the Mt Magnet mill capacity from 2 million tonnes per annum (Mtpa) to 3Mtpa at a cost of A$95 million.
- Addition of key deposits, including the Eridanus open pit cutback and Hesperus open pit.
- Life-of-mine AISC expected to average A$1,918 per ounce.
The mill upgrade aims to improve processing efficiency while reducing milling costs by over 15% across all ore sources.
Figure 2: Mt Magnet Gold Mine’s current mining area
Eridanus Expansion and Production Timeline
Ramelius has updated its Mineral Resource and Ore Reserve estimates for Eridanus, positioning it as a major contributor to future production. The open-pit Mineral Resource is now 24 million tonnes at 1.7 grams per tonne (g/t) for 1.3 million ounces of gold.
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The underground Mineral Resource totals 4.2 million tonnes at 2.3 g/t for 310,000 ounces. The Eridanus open pit cutback is scheduled to commence production in FY27, while the underground project is expected to start in FY34.
Figure 3: Eridanus Open Pit Mine
Rebecca-Roe Gold Project Integration
The Company has integrated the Rebecca-Roe Gold Project into its broader production strategy. The project’s Pre-Feasibility Study indicates a strong contribution to the overall output from FY26 onwards.
The expansion aims to optimise resource extraction while extending the operational timeline of key sites. Ramelius has also planned ongoing exploration to expand its high-grade deposits.
Financial Strength and Market Position
Ramelius maintains a strong financial position to execute its long-term strategy. As of December 2024, the Company reported cash and gold holdings of A$501.7 million. The Company forecasts over A$270 million in underlying free cash flow for H2 FY25, assuming a gold price of A$4,000 per ounce.
Zeptner said, “We have the financial capacity, an experienced team in place and a proven track record to turn plans into production and cash flow.”
Future Investments and Growth Strategy
The planned A$95 million mill upgrade is expected to improve operational efficiency and reduce costs. The project will include:
- A larger primary crusher.
- Installation of a 3.5MW SAG mill and a 3.5MW ball mill.
- Upgraded gravity screen and a larger gravity concentrator.
- Increased leach tank capacity.
An investment decision is expected in the September 2025 quarter, with construction scheduled for the December 2026 quarter.
Industry Outlook and Market Positioning
Australia’s gold sector remains strong, with the country producing 310 tonnes of gold in 2023. The global gold price has shown resilience, trading around A$3,500 to A$4,500 per ounce.
Ramelius aims to capitalise on the favourable market conditions by enhancing production efficiency and extending mine life. The Company’s strategic focus on operational cost control positions it as a key player in the sector.
Upcoming Investor Conference Call
Ramelius has scheduled an investor conference call on 11 March 2025 to discuss the Mt Magnet Mine Plan. Managing Director Mark Zeptner and CFO Darren Millman will provide insights into the Company’s expansion plans.
Investors can access the live call through the Company’s official registration link. A recorded version of the discussion will be available on the Ramelius website.
Ramelius Resources remains focused on delivering long-term value through operational efficiency and strategic investments in its gold production assets.
